Buying and selling a home can cause stress among even the most seasoned homeowners. However, when you are selling your home while simultaneously looking for a new one, the task can feel quite daunting, especially when the demand for new homes keep rising and the supply seems dwindling. Just know that you are not alone if you are feeling overwhelmed by the thought of selling and buying a home all at once. Thankfully, Michele Harmon Team is here to help you combat this stress with 9 great tips to help you effortlessly buy and sell your home at the same time!
What Should You Do if You Sell Your House Before You Can Buy a New One?
1. Consider Your Advantages as a Seller
In a competitive market, buyers may consider making an agreement in order to get the home they want. For example, if you are needing to tap into your home equity for a down payment, a buyer may agree to a rent-back clause that will allow you to continue living in your home after closing for a set period of time and negotiated fee. However, it is important to keep in mind that many lenders will limit the duration of a rent-back to 60 days and that there are some liability issues for you to consider prior to entering into an agreement. A contract and security deposit should be in place in case of any property damage or unexpected repairs that may be needed during the rent-back period.
2. Be Open to Short-Term Housing Options
Although it is not ideal to move out of your old home prior to moving into your new one, it is quite common. If you are fortunate enough to have generous friends or family to take you in, that may be your best option. If you do not, you can find temporary housing. Consider renting a furnished apartment, a vacation real, or a month-to-month lease. If space is an issue, you may want to consider only bringing the necessities and putting some of your belongings in storage. A short-term rental agreement can also provide you with the opportunity to get to know your new neighborhood better and allow you to have a more informed decision about your approaching new purchase.
3. Embrace the Idea of Buying Later
Rather than stressing about perfectly timing your home sale and purchase, make a plan to focus on just one at a time. Selling prior to buying your next home offers multiple advantages. For example, you can have cash on hand from the sale of your current home! This will allow you to be in a better position when it comes to buying your new home. By allowing yourself to focus on one step at a time, you can alleviate a ton of pressure and feelings of uncertainty.
What If You Get Stuck with Two Mortgages at Once?
This is a common question we get from buyers who are selling a home while shopping for a new one. It is realistic to expect a minor overlap in mortgages. To ensure you do not get stuck carrying over two mortgages for longer than you can afford, calculate the maximum number of months you can afford to pay both. If you are completely unable to afford both mortgages at once, selling before you buy may be the best option for you. However, if you have some flexibility in your budget, it is possible to manage both a home sale and a purchase simultaneously. Here are our tips to help you streamline the process:
1, Simplify
Your sales timeline can be condensed if you only focus on tasks that matter the most when it comes to selling your home quickly. For example, clean and declutter all common areas and fix any maintenance issues as quickly as possible. Do not spend unnecessary time and money into pricey renovations or home projects. Michele Harmon Team can advise you on repairs and upgrades that will be worth your time and investment.
2. Take Time to Prepare
You can save valuable time by filing paperwork as soon as possible. If you know you will need a mortgage to buy your next home, get pre-approved right away so that you may shorten the amount of time to process your loan. You may also want to consider setting your home sale up for a fast and smooth transition by compiling any relevant documents about your current home such as appliance warranties, renovation permits, and repair records. This will have you ready to provide quick answers to questions before they arise.
3. Ask Us About Contingencies that Can Be Included in your Contracts
Our job as your agent is to negotiate on your behalf and help get you terms awarded in your favor. For example, it is possible for us to add a contingency to your purchase offer that will allow you to cancel a contract if you have not sold your home. However, it is important to keep in mind that this can cause a backfire if you are competing in a bidding war. We can discuss the pros and cons of these tactics and what is realistic with the market conditions.
What If Things Do Not Go as Planned or You Feel Overwhelmed with Stress?
When you are under the pressure of selling your home or when you have been shopping for a home for quite a while, it can be easy to become overwhelmed with stress and emotions. Take time to slow down, breathe, and delegate as much as possible. In addition, you can:
1. Accept that Compromise is Inevitable
Do not worry about getting every last detail right with your home search and sale. Relax and remind yourself that things will work out in time although it may not happen the way you originally had in mind. Timing your home sale perfectly is not necessary for a successful home sale and some type of compromise will almost always be necessary. Thankfully, if you have Michele Harmon Team working for you, you can feel comfort in knowing that we have your best interests in mind and that we are constantly monitoring the details behind the scenes.
2. Stop Comparing
If your home search or sale is not going as quickly as your neighbor’s did, it does not mean you are going to fail! It is possible that seasonality trends affect sales in your neighborhood. A delayed sale in the Summer or Fall may affect your journey, but not always. The National Association of Realtors has reported that the housing market is often more competitive during the Summer and less competitive during the Winter. However, there is always an exception to the rule. Every Real Estate transaction is different. Therefore, it is always important for you to talk to Michele Harmon Team about your specific situation.
3. Seek Help as Soon as Possible
Call Michele Harmon Team early in your process. We will provide you with guidance on what to do to prepare for the sale of your current home and we will also help you narrow down your list of must-haves and wants for your next home. This way, you will be prepared to act quickly and confidently when it is time to list your house or make an offer on a new home. Our job is to guide you and advocate on your behalf, and we want you to be able to lean on us throughout the process. Michele Harmon Team is here to help you ease your burden and make your move as seamless and stress-free as possible.
In Conclusion:
It is challenging to buy and sell a home simultaneously but it does not have to be a nightmare. It may even be fun! The key to be successful with this scenario is to allow us to help educate you about the current market and for you to prepare yourself for multiple different scenarios. Michele Harmon Team will help you evaluate your situation and provide you with honest and individually tailored advice that addresses your unique needs. Depending on your specific circumstances, now may be a great time for you to sell your home and buy a new one. However, our thorough assessments may show you that you are better off putting your search on hold for a bit longer.
Give us a call at 713-818-1330 or click here for a free consultation and home valuation. From there, we can help you review your options and help you decide on the best way to move forward. Your home is our business!
It is challenging to buy and sell a home simultaneously but it does not have to be a nightmare. It may even be fun! The key to be successful with this scenario is to allow us to help educate you about the current market and for you to prepare yourself for multiple different scenarios. Michele Harmon Team will help you evaluate your situation and provide you with honest and individually tailored advice that addresses your unique needs. Depending on your specific circumstances, now may be a great time for you to sell your home and buy a new one. However, our thorough assessments may show you that you are better off putting your search on hold for a bit longer.
Give us a call at 713-818-1330 or click here for a free consultation and home valuation. From there, we can help you review your options and help you decide on the best way to move forward. Your home is our business!
Sources:
Realtor.com –
https://www.realtor.com/advice/sell/what-is-a-rent-back-agreement/
Bankrate.com – https://www.bankrate.com/real-estate/sell-your-house-while-buying-another/
National Association of Realtors
https://www.nar.realtor/blogs/economists-outlook/seasonality-in-the-housing-market